India will next year overtake China in economic growth, according to new forecasts by the IMF (International Monetary Fund).
The IMF, releasing in Beijing its update to the World Economic Outlook, said economic growth in China would fall in 2015 to 6.8% from 7.4% in 2014.
And in 2016, China’s growth would ease to 6.3% while India would hit 6.5% (up from 6.3% this year).
Globally, the IMF has slightly downgraded its estimate on world economic growth for 2015 to 3.5% from 3.7%.
The IMF has revised upward to 3.6% economic growth in the US, and has put Euro area growth at 1.2% and Japan growth down to 0.6%.
The IMF says leading indicators point to a further slowdown in China.
“The authorities are now expected to put greater weight on reducing vulnerabilities from recent rapid credit and investment growth and hence the forecast assumes less of a policy response to the underlying moderation,” the IMF update says.
“Lower growth in China will also have important regional effects, which partly explains the downward revisions to growth in much of emerging Asia.”
Here are the full forecasts:
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